Professional Documents
Culture Documents
Concept Map 2
Concept Map 2
IFRS 3
Terms
Business Combination
– event where one entity obtains control over the other.
Acquisition Date
- The date the acquirer contains control over the acquiree
Acquirer
- Acquiring entity or the one obtaining control over the other.
Acquiree
Acquired entity or the one being obtained
Illustration IFRS 3
OCCURENCE
STRUCTURE ACQUISITION
ACQUIREE
ACQUIRER
ACQUIRE
CONTROL MAJORITY SHARES TO
ACQUIRE CONTROL
Acquisition Method
Objective
As to why a business combination is performed
Consideration Given
Form of payment (Cash, Incurring Liability, issuing equity instrument)
Acquisition of Business
There should be an acquisition of business, and has 3 elements:
Input
Process
Output
Acquisition Method
3 REQUIREMENTS
Goodwill
• the aggregate of the value of the consideration transferred (generally at fair value),
the amount of any non-controlling interest, the acquisition-date fair value of the
acquirer's previously-held equity interest in the acquiree.
• the net of the acquisition-date amounts of the identifiable assets acquired and the
liabilities assumed.